Congressional Democrats have been more active lately. We’re seeing an increasing number of blue lawmakers call for President Joe Biden to withdraw his seat from the 2024 U.S Presidential elections due to electability concerns. A number of pundits in the media and political experts urge Democrats to put a replacement nominee put forward. However, Biden clearly remains committed and focused on being re-elected, saying he will only back out if the polls show no chance of winning. At this point, polls still show a strong percentage of Biden loyalists, suggesting Biden will likely remain in the race. Meanwhile, investors are identifying potential stocks to buy in anticipation of the upcoming election outcome.
If Biden drops out, or the political landscape shifts in favor of a Republican administration, the stock market will be affected. There are plenty of reasons to speculate on certain sectors. But it’s clear that political influence and policy stances on certain sectors vary wildly between the two parties.
For those who think Biden may drop out, or that Trump’s chances will continue to rise, here are three stocks to buy that may be considered bets on a changing political order in the U.S. in the coming months.
Exxon Mobil (XOM)
Exxon Mobil (NYSE:XOM) has plenty of volatility in terms of stock price in recent months. But that doesn’t change the fact that the company remains a leader in the global energy sector. As of the time of writing, XOM stock is down from its recent all-time high, but not by much. The company’s outlook remains strong, despite the fact that Exxon has missed earnings estimates for four consecutive quarters.
The company’s outlook may change as a result of Republican policies moving forward. Eased drilling and permitting regulations could pave the way for capacity growth, which hasn’t been seen in some time. While this may have a downward effect on commodity prices in the near-term, many view this as a positive for Exxon’s growth potential over the long-term.
According to Exxon’s Form 8-K disclosure, it showed that there are lower natural gas prices and reduced refined margins. The company completed its acquisition of Pioneer Natural Resources on May 3. This adds 1.4 million net acres and 16 billion barrels of oil equivalent resources to its Permian presence.
Thus, Exxon could be poised to return to growth in a shifting political landscape.
Trump Media and Technology (DJT)
Biden’s presidential rival, Donald Trump, is also gaining traction from its supporters. It’s clear that if Biden does withdraw his candidacy, Trump’s chances of winning the election will improve. If that’s the case, Trump Media & Technology (NASDAQ:DJT) certainly looks like it could be one of the stocks to buy.
Of course, given the volatility around DJT stock, this is a vehicle many investors should rightly view as a speculative bet. This is still a company that’s producing around $327 million in losses on less than $1 million in revenue. Until there’s some monetization here, there are few fundamental reasons to buy this stock.
But that won’t matter if retail investors continue buying. As with previous meme stock rallies, DJT stock could surge in the event Trump’s chances get boosted by any catalyst. We’ll have to watch how the political landscape shifts for many more reasons than just the stock market. But leaving DJT stock off this list would be a major omission to be sure.
Barrick Gold (GOLD)
A leading gold miner, Barrick Gold (NYSE:GOLD) has clearly thrived from rising gold prices. The company’s share price has skyrocketed as its balance sheet and profitability profile have improved as a result of surging gold prices. Gold recently made a new all-time high, and appears to be headed higher as interest rate cut bets pick up.
Donald Trump has been very vocal about his views on interest rates in the past, putting political pressure on the Fed to cut rates. While the pandemic was certainly an outlier event that likely would have caused rates to fall regardless of who was in power, the eventual replacement of Jerome Powell and the installation of a more dovish Fed chairman could bode well for gold prices over time.
Barrick remains highly exposed to gold prices, and indirectly, interest rates. If Biden drops out of the race, or the winds continue to shift in Trump’s direction, this could be one of the stocks to buy for near-term upside moving forward.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.